In the digital era and the era of the industrial revolution 4.0, the quality of human resources needs to be improved in order to have competencies that are in accordance with the needs of the organization. Therefore, an effective and efficient method is needed to improve employee competence by using e-learning technology. This study analyzes the Diffusion of Innovation Theory through the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The study uses quantitative data obtained by surveying 400 SME employees in Indonesia using an e-learning system. Dissemination of data is by using online questionnaires through social media. Data analysis uses structural equation modeling (SEM) modeling. The results of data analysis show that the theory of diffusion of innovations mediated by intrinsic and extrinsic motivation in the UTAUT model had a significant effect. The aspects that make up the theory of diffusion of innovation significantly and directly affect the intention of SMEs employees to use the e-learning system. The findings show that the diffusion of innovation theory has various indicators for the application of learning systems and further e-learning development so that they can have a real and significant impact on improving organizational performance and competitiveness.